Indo-Asian News Service, New Delhi. SBI Funds Management Limited, the fund management company of State Bank of India, the country’s largest commercial bank, can be listed in the stock market in the year 2027. This information was given by SBI Chairman Challa Srinivasulu Setty at the City India 2026 conference on Wednesday. On the sidelines of the program, he said that SBI is preparing to launch the IPO of its Asset Management Company as draft papers for this have already been submitted to the Securities and Exchange Board of India.
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What can be the size?
Setty further said, “The listing of SBI Asset Management Company is highly expected to happen in the calendar year 2027.” He also said that the proposed IPO of SBI Funds Management Limited is expected to be worth up to Rs 13,000 crore. If it comes with this size, then it will be the largest Initial Public Offering in India’s Asset Management Industry so far.
The entire proposed IPO is expected to be an offer-for-sale (OFS). In this, about 10 percent of the total share holding i.e. about 20.37 crore shares will be sold. Under the proposed structure, SBI plans to sell about 6.3 per cent stake in the company, while Joint Venture Partner, Amundi Asset Management will sell about 3.7 per cent stake.
‘Focus on long term’
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Currently, SBI holds 63 percent stake and Amundi holds 37 percent stake in SBI Funds Management. Setti has adopted a positive outlook on India’s long-term economic outlook despite geopolitical tensions and increased market volatility. He also said that the entire global economy is facing geopolitical instability which brings new challenges for businesses and investors every year. However, he urged investors to focus on India’s structural growth story rather than short-term market fluctuations.
SBI will be the third company to be listed.
Challa Srinivasulu Setty said that instead of looking at the Sensex, look at India as a long-term growth story. He further said that India is now fast emerging as a decisive development story of the 21st century. It is no longer a backward economy. If the proposed listing is successful, SBI Funds Management Limited will emerge as the third listed subsidiary of SBI after SBI Cards and SBI Life Insurance.
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